Oil Updates — prices dip as US crude inventories surge, tariff concerns loom

Oil Updates — prices dip as US crude inventories surge, tariff concerns loom
Brent crude futures fell 18 cents, or 0.2 percent, to $77.31 a barrel by 8:48 a.m. Saudi time. Shutterstock
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Updated 29 January 2025
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Oil Updates — prices dip as US crude inventories surge, tariff concerns loom

Oil Updates — prices dip as US crude inventories surge, tariff concerns loom
  • US President Donald Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday
  • Saudi energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices

LONDON: Oil prices fell on Wednesday, following a rise in US crude stockpiles and easing worries over Libyan supply, while focus turned to potential US tariffs on Canadian and Mexican imports.
Brent crude futures were down 59 cents, or 0.76 percent, to $77.90 a barrel as of 0916 GMT, while US crude futures had lost 55 cents, or 0.75 percent, at $73.22.
The White House said on Tuesday that US President Donald Trump still plans to issue 25 percent tariffs on Canada and Mexico on Saturday.
“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs going into effect on Saturday potentially lifting US prices then,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Canada supplied 3.9 million barrels per day of oil to the US in 2023, roughly half of overall imports for the year, while Mexico supplied 733,000 bpd, according to data from the Energy Information Administration.
“Overall, trade prices are a tad softer after Libya said exports have resumed, and API reported a weekly increase in US stockpiles. In addition, OPEC+ is expected to stick to their already announced production increase from April,” said Hansen.
US crude oil and gasoline stocks rose last week, while distillate inventories fell, market sources said on Tuesday, citing American Petroleum Institute figures.
The EIA, the statistical arm of the US Department of Energy, is due to release its weekly data at 1530 GMT on Wednesday.
Supply concerns eased after Libya’s National Oil Corp. said on Tuesday that export activity was running normally after it held talks with protesters demanding a halt of loadings at one of its main oil ports.
The OPEC+ Joint Ministerial Monitoring Committee meeting next Monday, will be another source of ambiguity in the current worryingly unpredictable political and economic environment, said Tamas Varga, analyst with oil broker PVM.
Saudi Arabia’s energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices and ahead of a meeting next week of OPEC+ oil-producing countries, according to official statements and sources.


Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa
Updated 21 sec ago
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Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

RIYADH: A new cooperation agreement between the Ministry of Investment and Prince Ahmed bin Fahd bin Salman Center will see Saudi Arabia enhance its entrepreneurial ecosystem in the Al-Ahsa region.

The deal signed with the center, also known as Sana, focuses on attracting pioneering companies and innovators while fostering a business-friendly environment.

The Kingdom is increasingly being recognized for its growing enteprise-friendly landscape, securing third position in the 2023-2024 Global Entrepreneurship Monitor report.

The latest initiative, inked at the Al-Ahsa Forum 2025 in Al-Ahsa, also seeks to foster greater engagement with creative thinkers and business leaders through investment meetings and events, and will support the issuance of entrepreneurial licenses and provide access to essential services.

Moreover, the Sana agreement seeks to explore investment opportunities, encourage strategic partnerships, and promote investment alliances that enhance the competitiveness of the entrepreneurship sector in Saudi Arabia.

The new deal comes against a backdrop of venture capital pouring into the Kingdom, with the country retaining its position as the leading destination for such funds in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marked the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total amount deployed in MENA, closing 178 deals, the most of any nation in the region.

Speaking to Arab News at at the LEAP 2025 Tech Conference held in February, Mohammed Al-Zubi —founder of Saudi venture capital firm Nama Ventures — explained that the nation is rapidly becoming a key player in the regional technology ecosystem and is emerging as the “center of gravity” for Middle East startups.

Al-Zubi believes Saudi Arabia’s support for the startup ecosystem is unmatched globally. Having spent time in Silicon Valley, London, and the Middle East, he argued that the Kingdom’s government-led initiatives are unparalleled.

According to the international policy advisory and research organization Startup Genome, Riyadh ranked among the top five startup ecosystems in the Middle East and North Africa in June, in collaboration with the Global Entrepreneurship Network.


King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol
Updated 5 min 44 sec ago
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King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol

RIYADH: King Salman on Thursday approved the official symbol for the Saudi riyal, marking the beginning of a new chapter in the Kingdom’s financial journey, as reported by the Saudi Press Agency.

Saudi Central Bank Gov. Ayman Al-Sayari expressed his gratitude to the nation’s leadership for launching the symbol, which he believes “reinforces Saudi Arabia’s financial identity both locally and globally.”

Al-Sayari further noted that this initiative underscores the growing international influence of the Saudi riyal, while also fostering a sense of national pride and cultural unity. He added that the newly designed symbol represents the Kingdom’s rich cultural heritage.

The symbol, which blends Arabic calligraphy with the name of the national currency, “riyal,” will be utilized in financial and commercial transactions both within the Kingdom and internationally.

The central bank governor also commended the collaborative efforts of all parties involved in the project, including the Ministry of Culture, the Ministry of Information, and the Saudi Standards, Metrology, and Quality Organization.


Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
Updated 21 min 19 sec ago
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Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
  • The company became the majority shareholder of Shell Pakistan Limited in November 2024
  • It has formed a partnership in Thar Coal Project following a win in Saindak mining project

ISLAMABAD: Saudi company Wafi Energy Pakistan Limited has announced its financial results for 2024, reporting a profit of Rs3.3 billion ($11.8 million), according to a statement from the group on Thursday.
Wafi Energy, an affiliate of the Asyad Group, became the majority shareholder of Shell Pakistan Limited (SPL) in November last year and now holds approximately 87.78% of the total issued share capital of SPL. However, the Shell brand will remain in Pakistan through retail and brand licensing agreements, with SPL as the exclusive brand licensee.
The financials of the company for the year ending December 2024 were announced by its board of directors.
“The company reported a profit after tax of Rs3.3 billion for 2024 compared to a profit of Rs5.8 billion [$20.7 million] in 2023,” the company said. “It is important to note that the 2023 results included a one-time income of PKR10.7 billion [$38.3 million] related to the waiver of Shell Group liabilities.”
The company highlighted that it increased its market share with Helix and Advance Lubricants and formed a partnership in the Thar Coal Project following a win in the Saindak Gold and Copper mining project.
“The mobility business also made significant strides, expanding its network by introducing 16 new sites and rebuilding nine existing ones,” the statement added. “The convenience retail business demonstrated strong growth, with a 28% year-on-year increase.”
SPL is one of the oldest multinationals in Pakistan, with a network of over 600 sites, countrywide storage facilities and a broad portfolio of global lubricant brands.
Shell has supported Pakistan’s development by providing energy for major projects like Mangla Dam and Kotri Barrage, powering Pakistan International Airlines’ first flights, expanding road infrastructure and fostering innovation among local entrepreneurs.


Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 
Updated 31 min 16 sec ago
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Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

Oman, Saudi Arabia ink 3 agreements to strengthen trade ties 

RIYADH: Oman and Saudi Arabia signed three agreements on trade, legal services, and manufacturing to strengthen economic cooperation and private sector collaboration. 

The deals, announced at the Omani-Saudi Business Forum in Muscat, include plans for a cloud-based warehouse and inventory management system, specialized legal consultations for the Omani market, and a gold and jewelry manufacturing facility in the country. 

This comes as economic ties between the two nations continue to grow, with bilateral trade reaching 2.18 billion Omani rials ($5.65 billion) by December and 1,496 Saudi-partnered companies operating in Oman. 

Omani Minister of Industry and Investment Promotion Qais bin Mohammed Al-Yousef highlighted this growth during the forum, emphasizing its role in enhancing bilateral cooperation. 

The event featured working papers from both sides, with Oman showcasing strategic projects and investment opportunities, while Saudi Arabia outlined its investment framework and industries that are driving economic diversification. 

Key sectors highlighted during the forum included real estate development, mining, and industry. Oil and gas, logistics, and health were also major focus areas. Additionally, information technology, finance, insurance, retail, and food security were emphasized. 

Faisal Abdullah Al-Rowas, chairman of the Oman Chamber of Commerce and Industry, underscored the forum’s role in unlocking new trade and investment opportunities. He noted that the Rub Al-Khali border checkpoint has significantly facilitated cross-border trade and investment flows. 

Discussions also focused on expanding export and import operations through the Rub Al-Khali port, as well as enhancing trade exchange and private sector cooperation, particularly in existing projects. 

Sheikh Ali bin Hamad Al-Kalbani, head of the Omani side of the business council, stressed that the body aims to strengthen communication between the private sector and government agencies in both countries. He highlighted its efforts to support mutual investments, address challenges faced by investors, and explore new opportunities. 

On the Saudi side, Nasser bin Saeed Al-Hajjri emphasized that cooperation between the two nations supports sustainable development and enhances investment opportunities across various sectors in line with Saudi Vision 2030 and Oman Vision 2040. 

During the forum, Oman presented several working papers and presentations on key goods, partnerships, and strategic projects between the two countries. Saudi Arabia, in turn, outlined its investment system and the vital sectors driving economic diversification.

On the sidelines of the event, business-to-business meetings were held to explore opportunities for joint investments and trade partnerships, as well as ways to enhance bilateral trade exchange. 


Moody’s affirms Egypt’s Caa1 rating with positive outlook

Moody’s affirms Egypt’s Caa1 rating with positive outlook
Updated 20 February 2025
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Moody’s affirms Egypt’s Caa1 rating with positive outlook

Moody’s affirms Egypt’s Caa1 rating with positive outlook

RIYADH: Global credit rating agency Moody’s has affirmed Egypt’s Caa1 long-term foreign and local currency rating with a positive outlook, citing improved debt service prospects.

A report from the organization said the move was driven by the country’s stronger foreign exchange reserves and lower borrowing costs following the currency’s devaluation and flotation.

Moody’s awards a Caa1 rating to countries with poor quality and very high credit risks, but the positive outlook reflects the measures taken by the government to control inflation and interest rates.

According to the agency, some factors negatively affecting the credit profile include Egypt’s high, albeit declining debt ratio, very weak debt affordability compared to peers, and persistently large domestic and external financing needs. 

Egypt’s credit rating is much lower than that of its Middle East and North African neighbors, such as Saudi Arabia, which was ranked Aa3 with a stable outlook in November, and the UAE, which was rated Aa2 in the same month. 

Explaining its decision regarding Egypt, the Moody's report said: “Monetary policy credibility and effectiveness is increasing as the central bank maintains a policy stance consistent with inflation targeting and a floating exchange rate regime. This should allow policy rates to decline, bringing further relief on the cost of debt, while maintaining an environment favorable to steady foreign-currency inflows.” 

It added: “However, credit vulnerabilities reflected in the Caa1 ratings continue to pose risk to Egypt achieving durable improvements in fiscal and external positions.” 

According to Moody’s, some of the additional factors that played a crucial role in maintaining the positive outlook include the implementation of measures by the central bank to tighten the money supply as outlined in the International Monetary Fund program parameters. 

Some of those measures include suppression and repayment of direct central bank loans to public entities and a tightening in reserve money growth. 

The positive outlook also reflects prospects of an improvement in foreign direct investments in the country. 

“Significant foreign direct investment inflows and future project development commitments, together with the shift to a market-based exchange rate regime, have boosted capital inflows and replenished Egypt’s liquid foreign exchange reserve buffers to $36 billion in January 2025,” said Moody’s. 

In December, the IMF announced that it reached an agreement with Egyptian authorities, allowing the North African nation to access about $1.2 billion to strengthen its troubled finances. 

The IMF added that the funding access is subject to executive board approval. 

The high inflation rate and low revenue from the Suez Canal have drastically affected Egypt’s economy over the last few months. 

Speaking at the Rome MED — Mediterranean Dialogues conference in November, Egypt’s Minister of Foreign Affairs Badr Abdelatty said that the country had incurred losses amounting to $8 billion due to a significant drop in the Suez Canal revenues. 

The US-based agency added that the constraints faced by Egypt’s economy could raise its susceptibility to capital outflows in times of external shocks. 

“This vulnerability is further compounded by ongoing risks to fiscal consolidation and sustained improvements in debt and debt affordability, taking into account large contingent liabilities in the public sector and very limited fiscal room to meet social spending needs while maintaining primary surpluses,” the report added. 

Moody’s also highlighted some possible scenarios that could lead to an upgrade of the country’s ratings, including the prospect of a significant and durable improvement in debt affordability through a sustained increase in revenue. 

The analysis added that sustained foreign direct investment inflows in the country could also boost confidence in Egypt’s growth prospects and macroeconomic rebalancing potential, supporting a higher rating.

Regarding the factors that could lead to a downgrade, Moody’s said: “A rising likelihood of renewed capital outflows or diminished inflows which reduce the prospect of a durable improvement in Egypt’s macroeconomic and external position would be credit negative.”